First Solar Inc (FSLR)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	2.46	2.61	3.29	3.50	4.10	2.80	2.62	2.30	3.29	3.06	3.58	4.01	3.58	4.66	4.67	5.05	5.67	3.54	3.72	4.33
Receivables turnover	2.47	4.08	4.38	9.38	8.08	7.76	5.45	8.48	6.81	10.57	5.09	3.77	9.26	11.80	9.34	7.91	4.63	4.46	6.26	3.40
Payables turnover	9.74	20.79	10.11	9.20	7.47	12.05	13.17	13.20	11.34	11.66	14.55	11.86	11.08	17.20	15.25	13.95	11.53	9.36	8.99	8.97
Working capital turnover	1.00	1.20	1.16	1.15	0.95	1.00	0.96	1.10	1.19	1.13	1.19	1.21	1.25	1.69	1.57	1.52	1.34	1.03	0.97	0.78

First Solar Inc's activity ratios indicate the efficiency of its operations in managing inventory, receivables, payables, and working capital.

The Inventory Turnover ratio has shown a decreasing trend over the quarters, suggesting that the company is taking longer to sell its inventory. This could indicate potential issues with managing inventory levels or demand for its products.

On the other hand, the Receivables Turnover ratio has fluctuated, with a notable increase in Q1 2023, indicating that the company is collecting its receivables more frequently. This could be a positive sign of efficient credit management or timely collection practices.

The Payables Turnover ratio has also fluctuated, showing an increase in Q3 2023. This indicates that the company is taking more time to pay its suppliers, which could potentially strain supplier relationships or indicate cash flow management considerations.

The Working Capital Turnover ratio has been relatively stable, with slight variations quarter over quarter. A ratio of 1.00 to 1.20 indicates that the company is effectively utilizing its working capital to generate revenue.

Overall, the company's activity ratios reflect a mix of strengths and areas for improvement, particularly in managing inventory levels and payables effectively. It may be beneficial for First Solar Inc to further evaluate its supply chain and credit management practices to optimize its operational efficiency.

Average number of days

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	148.30	139.90	111.01	104.28	88.96	130.43	139.57	158.97	110.88	119.23	102.02	90.99	102.02	78.29	78.13	72.25	64.39	103.15	98.23	84.31
Days of sales outstanding (DSO)	days	147.64	89.49	83.32	38.92	45.20	47.06	66.91	43.05	53.62	34.53	71.67	96.69	39.41	30.94	39.07	46.12	78.76	81.75	58.27	107.31
Number of days of payables	days	37.47	17.56	36.09	39.66	48.88	30.29	27.72	27.65	32.18	31.31	25.09	30.77	32.96	21.22	23.94	26.17	31.66	39.00	40.62	40.69

First Solar Inc's activity ratios, including Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH):
- Over the quarters, DOH has been fluctuating, indicating varying levels of inventory holding efficiency.
- The increase in DOH from Q1 to Q4 of 2023 suggests that the company is holding inventory for a longer period, which may tie up cash and lead to higher carrying costs.
- However, the DOH decreased significantly from Q4 2022 to Q1 2023, reflecting improved inventory management during that period.

2. Days of Sales Outstanding (DSO):
- DSO shows how quickly the company collects payments from its customers.
- The significant increase in DSO from Q1 to Q4 of 2023 indicates a potential delay in collecting receivables, which could impact cash flow and liquidity.
- In Q2 and Q3 of 2023, the DSO decreased substantially, suggesting more efficient collection of accounts receivable during those periods.

3. Number of Days of Payables:
- This ratio indicates the average number of days it takes for the company to pay its suppliers.
- The decrease in the number of days of payables from Q1 to Q3 of 2023 suggests that the company is paying its suppliers more quickly during those quarters.
- However, the increase in Q4 2023 compared to Q3 2023 indicates a potential delay in paying suppliers, which could impact relationships and future credit terms.

Overall, these activity ratios highlight the importance of monitoring inventory levels, managing accounts receivable efficiently, and maintaining good relationships with suppliers to ensure optimal working capital management and financial health.

Long-term

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	0.75	0.78	0.74	0.73	0.74	0.81	0.83	0.89	1.10	1.05	1.24	1.24	1.13	1.47	1.34	1.36	1.40	1.12	1.24	1.19
Total asset turnover	0.32	0.33	0.33	0.33	0.32	0.34	0.33	0.34	0.39	0.36	0.41	0.42	0.38	0.50	0.44	0.44	0.41	0.33	0.35	0.30

The fixed asset turnover ratio for First Solar Inc has shown a declining trend over the past eight quarters, starting at 0.83 in Q1 2022 and decreasing to 0.75 in Q4 2023. This indicates that the company is generating less revenue from its fixed assets over time. The total asset turnover ratio, on the other hand, has been relatively stable around 0.33 throughout the same period. This suggests that the company is consistently generating revenue in relation to its total assets. Overall, the fixed asset turnover ratio provides insight into how effectively the company is using its fixed assets to generate sales, while the total asset turnover ratio gives a broader view of the company's overall efficiency in generating revenue from its total assets.